RBC Capital: Here are 5 Reasons Why Apple is Poised to Outperform

Tech titan Apple Inc. (NASDAQ:AAPL) today received some very bullish commentary from analysts at RBC Capital Markets, who expect the stock to outperform the wider markets for the foreseeable future.

The firm cited five big reasons for the positive view:

  1. Samsung’s struggles amid the Galaxy Note 7 battery fire issue could enable AAPL to actually accelerate their share gains. RBC noted that while Apple would likely have gained anyway, the fire problems have perhaps provided an even better environment for iPhone sales.
  2. Product mix could shift toward the premium model, which average selling price (ASP) poised to surprise to the upside, due to a bigger difference between the iPhone 7 and the iPhone 7 Plus (versus the 6/6 Plus).
  3. An attractive stock valuation, with AAPL trading at just 8x forward-looking EV/FCF, and just 12x PE (9x ex-cash).
  4. With volatility rising, Apple could benefit as it historically trades better on a relative basis during volatile periods versus the wider market.
  5. There’s likely room for forward twelve months (FTM) EPS estimates, given an extra week this December, improving margins, and ASP tailwinds.

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